This work studies the contagion risk through the portfolio investment channel using network analysis and simulation on cross-country bilateral data. The importance of the portfolio channel in the transmission of financial shocks reflects the high interconnectedness of the global financial...

This paper studies the sudden stop in capital flows that emerging markets experienced throughout the first months of the pandemic. First, we find that the sudden stop in capital flows was strongly affected by lower portfolio investments by non-bank financial intermediaries: for many emerging...

This paper explores how the sudden stop in capital flows to emerging market economies associated with the Covid-19 pandemic unfolded, the substantial policy responses that were needed to alleviate it, and the lessons we might draw from this episode. We identify four areas where further work...